3 ms·
The S&P 500 isn't ideal, but it's much better than the Dow. Both indices are a selection of companies, but the Dow is smaller which leaves much more room for ju
by jefftk 5y ago
The S&P 500 isn't ideal, but it's much better than the Dow. Both indices are a selection of companies, but the Dow is smaller which leaves much more room for judgment calls. Additionally, that the Dow is weighted by share price is completely ridiculous.
(If you actually want to index, though, a total market fund makes much more sense)
- tkojames 5y agoYea true. But most people I think know the Dow is kinda of BS handpicked list. Where the S&P 500 pretends it is the top public 500 companies in the USA. Just always kinda bother me how they advertise it. Most of them will become useless anyways. Firms are going to be using in house index so they don't have to pay the fees. Fidelity is doing this with there free index funds.